Why Are Businesses Interested In Productivity?

Why are businesses interested in Productivity

Why are businesses interested in increasing productivity?

Is it for the Kudos of being the best?

It is quite simple – Higher Profits !

HOW IS PRODUCTIVITY IMPROVED?

Productivity is achieved by :

delivering the same Outcome with Less Effort

OR

delivering more Outcome for the same Effort

Either situation works for the business, by reducing costs or increasing sales.

Increase profits can be used to deliver a better return to shareholders or pay staff more, or a combination of both.

PRODUCTIVITY COMPARISON?

How productive is your business?

Do you measure productivity?

The UK Office of National Statistics provide a calculator to compared to other companies in your industry.

Knowing how you compare to competitors is useful information, so I recommend every company uses the calculator.

https://lnkd.in/e7xCiPCT

WHAT CAN YOU DO ABOUT PRODUCTIVITY?

Motivating staff and providing them with good work hygiene factors such as suitable desks, lighting, noise levels, etc. can help improve productivity but the impact is relatively short lived. Nobody can stay “Super Focussed” and “Highly driven” for week after week.

To create a permanent improvement in Productivity the fundamentals have to change:

 What is done

 How it is done

 The Tools used to perform the task

 The material used in the task

One way to is with automation . This is using tools to ensure that the same things get done, consistently but the how it is done changes. There is less input to the task by people.

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Please see Productivity FAQ page for details on some of the terms / jargon used above.

For more information on Why Are Businesses Interested In Productivity? talk to Ether Solutions Ltd